Truist, Aramark, Chromalloy, Crystal Clean, Installed Building, Hillman free to trade

By Sara Rosenberg

New York, March 22 – Truist Insurance Holdings LLC downsized its first-lien term loan B for a second time as the company opted to upsize its bond offering again, and Aramark Services Inc. set the spread on its term loan B-7 and term loan B-8 at the low end of guidance, and then these deals broke for trading on Friday.

Other deals to make their way into the secondary market during the session included Chromalloy Corp., Crystal Clean (JFL-Tiger Acquisition Co. Inc.), Installed Building Products Inc. and Hillman Group Inc.

In more happenings, HireRight Holdings Corp. increased the size of its incremental first-lien term loan, and Curium Pharma finalized pricing on its term loan B at the low end of guidance.

Also, GIP II Blue Holding LP (HESM Holdco) disclosed price talk with launch, and Par Pacific (Par Petroleum) and Herbalife Ltd. joined the near-term primary calendar.

Truist Insurance downsized

Truist Insurance scaled back its seven-year covenant-lite first-lien term loan B (B2/B/B+) to $3.1 billion from a revised amount of $3.35 billion and an initial size of $4 billion, according to a market source.

On the flip side, the company’s senior secured notes offering was upsized to $3 billion from a revised amount of $2.75 billion and an initial size of $2.1 billion.

Pricing on the term loan B is SOFR plus 325 basis points with a 25 bps step-down at 4.75x first-lien net leverage, a 25 bps step-down upon an initial public offering, a 0% floor and an original issue discount of 99.75. The loan has 101 soft call protection for six months.

Earlier in syndication, pricing on the term loan B firmed at the low end of the SOFR plus 325 bps to 350 bps talk, a 25 bps step-down at 4.25x first-lien net leverage was removed, and the discount was changed from 99.5.

Along with the term loan B, the company is getting a $1.175 billion five-year revolver (B2/B/B+) and a $1.9 billion eight-year second-lien term loan (Caa2/CCC+/CCC+).

Pricing on the second-lien term loan, which allocated earlier this month, is SOFR plus 475 bps with a 0% floor and a par issue price, and the debt has hard call protection of 102 in year one and 101 in year two.

Truist starts trading

On Friday, Truist Insurance’s term loan B broke for trading, with levels quoted at 99 7/8 bid, par 1/8 offered on the open and then the debt moved up to par bid, par ¼ offered, another source added.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Wells Fargo Securities LLC, Truist Securities Inc., Stone Point Capital Markets, Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., Mizuho and TD Securities (USA) LLC are leading Truist Insurance’s term loan B. JPMorgan is the administrative agent.

Stone Point and Morgan Stanley Senior Funding Inc. are leading the arranger group on the second-lien loan. Morgan Stanley is the administrative agent.

The credit facilities will be used with the notes and equity to fund the buyout of Truist Insurance by Stone Point Capital and Clayton, Dubilier & Rice from Truist Financial Corp. at an implied enterprise value of $15.5 billion. Mubadala Investment Co. and other co-investors are also participating in the investment.

Closing is expected next quarter, subject to regulatory approvals and other customary conditions.

Truist Insurance is a Charlotte, N.C.-based insurance brokerage.

Aramark updated, frees

Aramark Services firmed pricing on its $730 million covenant-lite term loan B-7 due April 6, 2028 and $1.095 billion covenant-lite term loan B-8 due June 22, 2030 at SOFR plus 200 bps, the low end of the SOFR plus 200 bps to 225 bps talk, a market source said.

The term loans still have a 0% floor, a par issue price, 101 soft call protection for six months and no CSA.

During the session, the term loans made their way into the secondary market, with levels quoted at par bid, par 3/8 offered, another source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B-5 due April 6, 2028 and an existing term loan B-6 due June 22, 2030 down from SOFR+CSA plus 250 bps with a 0% floor. Current CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Aramark is a Philadelphia-based food service and facilities services provider.

Chromalloy hits secondary

Chromalloy’s $900 million seven-year term loan B (B2/B) began trading as well, with levels quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the term loan is SOFR plus 375 bps with a 0% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from SOFR plus 400 bps.

RBC Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, BMO Capital Markets, Morgan Stanley Senior Funding Inc., Mizuho, PSP, Citizens, MUFG, Regions and Santander are leading the deal that will be used to refinance the company’s existing term loan, which was provided by direct lenders as part of the acquisition of the business by Veritas Capital in November 2022.

Chromalloy is a Palm Beach Gardens, Fla.-based provider of proprietary engine solutions, primarily for the commercial aerospace, energy and military end markets.

Crystal Clean breaks

Crystal Clean’s $620 million first-lien term loan due Oct. 17, 2030 (B2/B) freed up in the afternoon, with levels quoted at par bid, par 3/8 offered, a market source said.

Pricing on the term loan is SOFR plus 450 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC and SMBC are leading the deal that will be used to reprice the company’s existing first-lien term loan down from SOFR plus 500 bps with a 0.5% floor.

Crystal Clean is a Hoffman Estates, Ill.-based provider of specialized environmental and waste management services.

Installed Building frees

Installed Building Products’ $500 million seven-year covenant-lite term loan B (Ba1/BB+) broke for trading too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is SOFR plus 200 bps with a 0% floor and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from talk in the range of 99.5 to 99.75.

RBC Capital Markets, BofA Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and Benchmark are leading the deal that will be used to refinance an existing $490 million term loan B and to pay fees and expenses.

Expected secured leverage is 1.2x, expected secured net leverage is 0.4x, expected total leverage is 1.8x and expected total net leverage is 1x.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

Hillman starts trading

Hillman Group’s roughly $751.9 million first-lien term loan due July 14, 2028 (B1/BB+) emerged in the secondary market, with levels quoted at par bid, par 3/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 250 bps with a 25 bps step-down at 3x first-lien net leverage, no CSA and a 0.5% floor. The loan was issued at par and has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing first-lien term loan down from SOFR+CSA plus 275 bps with a 25 bps leverage-based step-down and a 0.5% floor. Current CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Hillman is a Cincinnati-based supplier of consumable hardware, personal protective equipment, and robotic and digital technologies.

HireRight upsized

Back in the primary market, HireRight raised its fungible incremental first-lien term loan due September 2030 (B2/B) to $300 million from $250 million and kept the original issue discount at 99, according to a market source.

Like the existing term loan, the incremental term loan is priced at SOFR plus 400 bps with a 0% floor.

The incremental term loan still has a ticking fee payable only if the transaction closes of half the margin from days 61 to 90 and the full margin thereafter.

Recommitments were due at noon ET on Friday, the source added.

Goldman Sachs Bank USA, RBC Capital Markets, Stone Point Capital Markets, Barclays, Citizens and Capital One are leading the deal that will be used to help fund the acquisition of the company by General Atlantic and Stone Point Capital LLC and, due to the upsizing, to fund a distribution to HoldCo. The sponsors are the beneficial owners of about 75% of the company’s outstanding shares of common stock and will acquire the outstanding shares they do not already own for $14.35 per share in cash.

Closing is expected in mid-2024, subject to shareholder and regulatory approvals.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

Curium updated

Curium Pharma firmed pricing on its $1.065 billion term loan B due July 2029 at SOFR plus 400 bps, the low end of the SOFR plus 400 bps to 425 bps talk, a market source said.

As before, the term loan has a 0% floor, a par issue price and 101 soft call protection for six months.

Allocations went out on Friday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 450 bps with a 0% floor.

Curium is a nuclear medicine company with headquarters in London and Paris.

GIP II guidance

GIP II Blue held its lender call on Friday morning and, shortly before the call began, talk on its $524,854,341 term loan B due Sept. 29, 2028 (Ba3/BB-) came out at SOFR plus 400 bps with 0 bps CSA, a 1% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at 5 p.m. ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from SOFR+CSA plus 450 bps with a 1% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

GIP II, owned by Global Infrastructure Partners, is the owner of general partner and equity unit ownership interests in Hess Midstream LP and its operating subsidiary, Hess Midstream Operations LP.

Par Pacific on deck

Par Pacific will hold a lender call at 11 a.m. ET on Monday to launch a $546 million covenant-lite term loan B due Feb. 28, 2030 talked at SOFR plus 375 bps with a 0.5% floor, an original issue discount of 99.75 for new money, a par issue price for old money and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 425 bps with a step-down to SOFR plus 400 bps at corporate ratings of Ba3/BB- with stable outlooks and a 0.5% floor.

Existing corporate ratings are Ba3/B+/B+ with stable outlooks and existing facility ratings are B1/BB/BB-.

Par Pacific is a Houston-based refiner, marketer, transporter and distributor of crude oil.

Herbalife joins calendar

Herbalife set a lender call for 11 a.m. ET on Monday to launch a $500 million senior secured term loan B, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to help refinance an existing term loan B due August 2025 with an outstanding balance of $650.6 million as of Dec. 31.

The company said in a news release that it is targeting $1.2 billion of secured financing and a $400 million revolver to repay its existing term loan A, term loan B and revolver, as well as a portion of its 2025 senior notes.

Herbalife is a Los Angeles-based health and wellness company.

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